European policies for_energy_and_environment

European Policies for Energy and Environment Why the European Union deals with Energy and Environment? What are the most interesting opportunities for Local Authorities? Tirano, 11 June 2010 Marco Canton

Index • Just 1 minute of Brainstorming… • Let’s have a look at the figures! • Energy and Environment on the Lisbon Treaty • The evolution of Energy Policies • The European Programmes and Initiatives

Trying to understand… • Why EU deals with Energy Policies? • Are Environment and Energy the same thing? • What’s happened in the last 2 years in Energy Policies? • What is it supposed to be improved in Europe?

Some basic notion… • The EU aims at implementing what was established by the Treaty (signed and accepted in all their parts by the member States). • Following the Principles contained on the Treaty, the EU works out legislative bills and financing Programmes

… moreover… • The Environmental policies was already present on the previous EU Treaties. Energy is considered an European Policy only with the Lisbon Treaty. • The “Climate Action” (dec. 2008) could be considered the first legislative framework for Energy in Europe. • The “Climate Action” contains several objectives shared by member States. • The European Commission prepares and proposes legislative texts to be presented to the European Parliament and to the Council. (Codecision procedure).

Some figures… • EU represents the 16% of energy consums by a population that is the 7,2% of the global population • EU produces the 20% of global GDP • EU is the biggest importer for oil (19%) and for gas (16%) • Pro-capita consum is double of global average. We produce 3 times the global average.

Energy consumes •33% Lost during the transformation phase •19 % Transports •17% Industry •16% Buildings •9% Services •6% Other

Power sources

Who really controls power sources ? about 10% of stocks About 90% of stocks Exxon Aramco (Saudi Arabia) Chevron NIOC (Iran) National Iranian Oil Company BP PDVSA (Petrolio from Venezuela) Shell Gazprom (Russia) Total Petrobras (Brazil) ENI Petronas (Indonesia) Repsol CNPC (China)

Potential saving • Manifacturing Industry 25% by 2020 • Transports 26% by 2020 • Buildings 27% by 2020 • Commercial Buildings 30% by 2020

Estimates • Without a radical change by 2030 the EU will depend on other States 90% for oil and 70% for gas. • The scarse stocks present on EU are already running out fail. Costs for oil and gas mining are already increasing. • EU has a low power on the energy price determination.

What is changed with Lisbon Treaty? Art. 4 paragraph 2 Shared competence between the Union and the Member States applies in the following principal areas: • (a) internal market; • (b) social policy, for the aspects defined in this Treaty; • (c) economic, social and territorial cohesion; • (d) agriculture and fisheries, excluding the conservation of marine biological resources; • (e) environment; • (f) consumer protection; • (g) transport; • (h) trans-European networks; • (i) energy.

What is changed with Lisbon Treaty?(2) Art. 2 Paragraph 2 When the Treaties confer on the Union a competence shared with the Member States in a specific area, the Union and the Member States may legislate and adopt legally binding acts in that area. The Member States shall exercise their competence to the extent that the Union has not exercised its competence. The Member States shall again exercise their competence to the extent that the Union has decided to cease exercising its competence.

What is changed with ENERGY Art 194 Lisbon Treaty?(3) In the context of the establishment and functioning of the internal market and with regard for the need to preserve and improve the environment, Union policy on energy shall aim, in a spirit of solidarity between Member States, to: (a) ensure the functioning of the energy market; (b) ensure security of energy supply in the Union; (c) promote energy efficiency and energy saving and the development of new and renewable forms of energy; (d) promote the interconnection of energy networks. Ordinary Legislative procedure: CODECISION

What is changed with Lisbon Treaty (4) Art 194 Paragraph 2 Such measures shall not affect a Member State's right to determine the conditions for exploiting its energy resources, its choice between different energy sources and the general structure of its energy supply…

What is changed with Lisbon Treaty (5) Art. 192 Paragraph 3 General action programmes setting out priority objectives to be attained shall be adopted by the European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee and the Committee of the Regions.

The evolution of Energy Policy in Europe • The European Coal and Steel Community (ECSC) 1951 and EURATOM 1957; • The Internal Market was the tool used by ECC to develop the Common Energy Policy; • The 1973 oil crisis influenced the Common approach of the energy sector.

The Common approach from ECSC to the ‘90s • To reduce the ECC reliance on imported Energy; • Secure and durable Supplying ; • Positive Economic conditions ; • Environment. Resolution of the European Council 1974 “a new strategy for the ECC Energy Policy” (The guidelines of the Resolution was not binding at all)

The other steps • 1995 Green Paper (Internal Energy Market, Energy free movement…) • Commission failed the introduction of the Energy Policy in the Amsterdam Treaty 1997. 3 Directives: • Liberalization of electric market (1996) • Liberalization of research for oil and gas mining (1997) • Liberalization of gas market (1998)

Last Years • Green Paper 2000 “Towards a European Strategy for the security of energy supply ” The APPROACH is CHANGED. The intent is to act on the Energy Demand. The new Approach wants to guide the consumers towards a sustainable behaviour on Energy Saving in Building and Transports. Green Paper 2005 “Doing More with Less ” Green Paper 2006 “A European Strategy for Sustainable, Competitive and Secure Energy” National Strategies are established by National Governments and are different State by State

Example: The Directive on the energy performance of buildings • The objective of this Directive is to promote the improvement of the energy performance of buildings within the Community, taking into account outdoor climatic and local conditions, as well as indoor climate requirements and cost- effectiveness. The Directive lays down requirements as regards: • the general framework for a methodology of calculation of the integrated energy performance of buildings; • the application of minimum requirements on the energy performance of new buildings; • the application of minimum requirements on the energy performance of large existing buildings that are subject to major renovation; • energy certification of buildings; • regular inspection of boilers and of air-conditioning systems in buildings and in addition an assessment of the heating installation in which the boilers are more than 15 years old.

The “Climate Action” Il 20-20-20 by 2020 On 23 January 2008 the European Commission put forth an integrated proposal for Climate Action. This package of proposals demonstrates that the EU’s climate change targets, which were agreed by EU leaders in 2007, are not only attainable but represent a major economic opportunity for Europe. The document lays out a strategy by which Member States will be able to slash their collective greenhouse gas emissions by at least 20% and boost the share of renewable energy to 20% of total consumption by 2020. • Reduction of 20% CO2 emissions (compared to 1990) – Unilateral commitment – Reduction of 30% CO2 emissions in case of an International Agreement. • 20% Energy Saving • 20% of use of energy from renewable sources. • 10% on Transports: – Biofuels

In concrete terms 1 Regulation, 4 Directives e 1 Decision: Agreement on the promotion of the use of energy from renewable sources Directive establishes a common framework for the promotion of energy from renewable sources. It sets mandatory national targets (Italy 17%) for the overall share of energy from renewable sources in gross final consumption of energy and for the share of energy from renewable sources in transport. It lays down rules relating to statistical transfers between Member States, joint projects between Member States and with third countries, guarantees of origin, administrative procedures, information and training, and access to the electricity grid for energy from renewable sources. It establishes sustainability criteria for biofuels and bioliquids.

The EU Programmes Programmes – IEE – Life+ European Energy Programme for Recovery ELENA - IEB • Networks (ERRIN) Network for European Regions • Other Initiatives (Covenant of Mayors)

Intelligent Energy-Europe Programme Promotion of use of energy from renewable sources, energy efficiency, energy saving and biofuels. YES – Analysis for market NO – Infrastructures/hardware; development; Policies analysis; Demonstrations; Making aware campaigns; best Research. practices/knoledge/tools exchange; development of new methodologies Public or Private Bodies and International Organisation NO natural person. 27 MS + Norway, Liechtenstein, Iceland, Croatia, Turkey Up to 75% Average Budget: About 800.000 – 1 million Euro 3 sub-programmes: SAVE – ALTENER – STEER Integrated Initiatives: Regional Energy Agencies – Creation of local Networks

LIFE Plus Environmental Protection and Biodiversity Promotion. Preservation of natural resources, integration of environmental Policies, Information Campaigns SI – good practices exchange; dissemination NO – research – Infrastructures – campaigns; innovation actions; support to Projects not in line with national priorities. the legislation; management of Nature 2000; … Public or Private Bodies and International Organisation NO natural person. 27 SM + Norway, Iceland, Switzerland, Liechtenstein + Croatia, Turkey, Macedonia + Serbia, Montenegro, Albania, Bosnia Herzegovina, Kosovo For projects concerning priority species and habitat up to 75%. Up to 50% for all other projects. Budget for project: 1 million Euro (Average) 3 Components: Nature and Biodiversity - Politics and Governance - Information and Communication Partnership is admitted. It is necessary a justification in case of projects with more than 5 partners 2 steps of evaluation: Environmental Ministry and European Commission It is important to present project in line with national priorities.

European Energy Programme for Recovery 43 major energy projects which will significantly contribute to the economic recovery in the EU, while increasing our security of energy supply by creating cross-border infrastructure. • will help to speed up and secure investments on infrastructure and technology projects in the energy sector • will help to improve the security of supply of the Member States • will help to speed up the implementation of the 20/20/20 objectives for 2020

ELENA European Local ENergy Assistance Many EU cities and regions have recently started to prepare or are initiating large energy efficiency and renewable energy proposals to tackle energy and climate change challenges. However, most of them are still at the conceptual stage and their implementation is proving difficult because many regions and cities, particularly medium to small ones, often do not have the technical capacity to develop large programmes in this area. ELENA helps public entities to solve such problems by offering specific support for the implementation of the investment programmes and projects such as retrofitting of public and private buildings, sustainable building, energy-efficient district heating and cooling networks, or environmentally-friendly transport etc.

ELENA European Local ENergy Assistance Financed through the Intelligent Energy-Europe Programme. ELENA support covers a share of the cost for technical support that is necessary to prepare, implement and finance the investment programme, such as: • feasibility and market studies; • structuring of programmes; • business plans, energy audits; • preparation for tendering procedures - in short, everything necessary to make cities' and regions' sustainable energy projects ready for EIB funding.

Other Initiative : Covenant of Mayors The Covenant of Mayors is an initiative to bring together the mayors of Europe’s most pioneering cities to exchange and apply good practice to improve their energy efficiency and promote low carbon business and economic development. • The Covenant of Mayors is a formal commitment to go beyond the EU objectives in terms of reducing CO2 emissions.

Other Initiative : Covenant of Mayors Signing the Covenant commits the signatory to : ► Prepare a baseline emissions inventory ► Submit a Sustainable Energy Action Plan (SEAP), 1st anniversary of the CoM signature ► Submit an implementation report every 2 years after that ► Attend the annual Covenant of Mayors conference ► Share experience with other areas, and promote the Covenant ► Organise energy Days

Other Initiative : Covenant of Mayors Why join the Covenant of Mayors? • Make a public statement of extra commitment to carbon reduction • Create or reinforce the dynamic on carbon reduction in your territory • Benefit from encouragement and example of other pioneers • Share the expertise developed in your own territory with others • Make your territory known as a pioneer • Publicise your achievements

Other Initiative : Covenant of Mayors Who can join the Covenant of Mayors? The covenant is aimed primarily at Cities, because: • Over half of greenhouse gases are created in and by urban areas. • 80% of the population lives and works in urban areas • Up to 80% of energy is consumed in urban areas In practice, to sign the Covenant you need to be the leader of a local authority: this may be an urban or rural authority, and of any size.

Thank you for your Attention. Any Question? Marco Canton cantonmarco@hotmail.com

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